Replies to post #42123 on A.I.M. Users Bulletin Board (AIMUSERS)

[SFSecurity]

Hi Toofuzzy, Just a quick clarification, please.

You say:

The premium should pay you an amount equal to the sale AFTER that one.
So if your next Aim directed sale is at 25 and the one after that is at 28 the option premium should cover the difference between 25 and 28.

$28 would put it 12% above the call sell point of $25. To get a sell at $25 I had to start at a purchase price of $21.60, The $25 sale price is 15.74% above the buy price using 0% sell advice per Tom. The next sell is at $26.40 per the AIM spreadsheet, or 5.6% higher, and the next is at $28.70, 8.7% higher.

The setup in the spreadsheet is 100 shares, $1000 minimum trade size, 20% Cash and 0% sell safe.

If I understand you correctly you are saying that the minimum premium would be $300 for the call, right?

Best,

Allen